SL Green to sell 34th Street building for $220M

July 01, 2013 03:00PM

Office landlord SL Green has agreed to sell off a 347,000-square-foot, fully leased office property at 333 West 34th Street for $220.3 million to a unit of American Realty Capital, Bloomberg News reported.

“This purchase was made below replacement cost, will increase our portfolio asset value to almost $700 million and reflects our continuing efforts to construct a portfolio of premium New York City real estate,” American Realty Capital chief investment officer Michael Happel told Bloomberg in a statement.

American Realty, a non-traded REIT, owned 17 properties that were 94.2 percent occupied as of March 31, Bloomberg said.

A team from Jones Lang LaSalle led by Richard Baxter and Scott Latham handled the sale, according to previous reports. The building is located between Eighth and Ninth avenues.

Tenants include the Metropolitan Transportation Authority and musical instrument retailer Sam Ash. SL Green bought the property in 2007 from Citibank, which formerly occupied it fully, for $183 million.

Previously, industry sources had said that the 10-story building could sell for $225 million. [Bloomberg News]Zachary Kussin